Musk Melts Down Over Report That Tesla Is Considered Replacing Him

Musk and Tesla say they told The Wall Street Journal its report of a headhunt was false. The WSJ says no such statement was provided

Elon Musk is pushing back on a report that his flagship company Tesla is looking to replace him as CEO after months of absenteeism in favor of his work as head of the so-called Department of Government Efficiency (DOGE) — and a decidedly inefficient first quarter for Tesla. 

On Wednesday, The Wall Street Journal reported that as of several weeks ago, Tesla’s board of directors had taken exploratory steps towards finding a suitable replacement, including by reaching out to executive recruitment firms. They had also warned Musk that he needed to refocus on the company.

Last month, Tesla reported a 71-percent cliff dive in earnings for the first quarter of 2024. Year-over-year revenue fell nine percent, and total earnings dropped from $1.4 billion in the first quarter of last year to $409 million in the first quarter this year. The value of Tesla’s stock has also plummeted over $120 since Trump’s inauguration, erasing all of its post-election gains and then some.  

With Musk’s attention already split between his various companies, which are now competing with his foray into political graft through his financial partnership with the Trump administration, it’s no wonder Tesla might be looking for new management. 

Musk, however, will not go down without a fight — or at least some very angry posts. 

“It is an EXTREMELY BAD BREACH OF ETHICS that the [Journal] would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors,” Musk wrote in the early hours of Thursday morning on X, which he also owns but is not the CEO.. 

In another post, Musk wrote that “WSJ is a discredit to journalism.” 

In a statement issued shortly after the article’s publication Tesla Board Chairman Robyn Denholm wrote: “Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company. This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead.” 

The Journal noted in their article that Tesla had not provided a statement on the matter prior to the report’s publication. 

Musk’s work at DOGE has created a public image problem for the various brands under his umbrella. The CEO has become the face of mass firings, arbitrary program cuts, plutocracy, and unelected political influence in the short months he’s worked as the president’s attack dog. Backlash to the president was compounded by backlash to Musk, and protests — and in some instances vandalism — outside of Tesla dealerships became a widespread form of opposition to the administration. Not even Trump’s attempt to turn the White House lawn into a makeshift Tesla dealership could effectively counteract the damage. 

After Musk’s millions were unsuccessful in buying a Wisconsin State Supreme Court seat, he seemed to take a deliberate step back from the spotlight, possibly in anticipation of the end of his temporary employee status in the White House, which is set to expire this month. 

At a Wednesday Cabinet meeting, Trump gushed over Musk, reassuring him that he had been “treated unfairly, but the vast majority of people in this country really respect and appreciate you, and this whole room can say that very strongly,” noting that he has “really been a tremendous help.” 

Musk — wearing two MAGA hats stacked on top of each other — replied to a chorus of forced laughter: “Well, Mr. President, you know they say I wear a lot of hats.”

The Tesla CEO has indeed been attempting to balance several hats, and it’s clear that at least one of his companies is begging him to take a few off.